QMS 102 Chapter Notes - Chapter 1: Statistical Hypothesis Testing, Level Of Measurement

• School: Ryerson University
• Department: Quantitative Methods
• Course: QMS 102
• Professor: Gunawardena Egodawatte

Document Summary

To summarize business data (descriptive methods used to create charts & tables) To draw conclusions from business data (inferential methods used to reach conclusions about a large group based on data from a smaller group) To make reliable forecasts about business activities (inferential methods used to develop, quantify, and improve the accuracy of predictive models) To improve business processes (inferential methods used to develop, quantify, and improve the accuracy of predictive models) Two different branches of statistics are used in business: Descriptive statistics collecting, summarizing, presenting and analyzing data. Inferential statistics using data collected from a small group to draw conclusions about a larger group i) ii) Estimation (e. g. , estimate the population mean weight using the sample mean weight) Hypothesis testing (e. g. , test the claim that the population mean weight is 120 pounds) Drawing conclusions about a large group of individuals based on a smaller group.